DALLAS — Progressive Insurance has confirmed that it is temporarily restricting new homeowners insurance policies in Texas and several other states. This move, which has been the subject of recent speculation, marks a significant shift in the company’s operations and could impact both current and prospective policyholders.
Initially, rumors circulated about Progressive’s decision to halt new homeowners policies in Texas. After multiple inquiries, Progressive clarified its stance, revealing that it is indeed imposing temporary restrictions on new homeowners insurance (HO3) for certain agents in select states, including Texas. The company maintains, however, that it remains committed to the property insurance market and anticipates these measures will enhance its long-term stability and competitiveness.
“This temporary restriction is part of our strategy to strengthen our homeowners business and ensure we can offer more robust coverage in the future,” a Progressive spokesperson stated. The restrictions will not affect other insurance lines; agents will still be able to write policies for personal auto, recreational vehicles, and commercial lines, as well as renters, condo, flood, and umbrella policies.
Despite this clarification, several details remain unresolved. The duration and extent of these restrictions are still unclear. Progressive has not yet provided information on whether existing homeowners policies in Texas will be impacted upon renewal.
Progressive’s current involvement in the Texas insurance market is notable. According to the Texas Department of Insurance (TDI), Progressive was the state’s largest private passenger auto insurer in 2023, with an 18.49% market share. In contrast, Progressive handled 2.52% of the homeowners multiple peril policies, making it the eighth-largest home insurer in the state.
The company’s decision comes amidst a broader trend of rising insurance premiums and increasing financial losses among major insurers in Texas. In 2023, Progressive reported a net underwriting profit of $101.7 million from its homeowners policies, contrasting sharply with the losses incurred by other major insurers. This trend highlights the ongoing challenges faced by insurers operating in the state, which has seen significant increases in homeowners insurance premiums and substantial financial losses due to severe weather events.
Recent reports indicate that insurers, including Progressive, have been adjusting their coverage and pricing strategies in response to increased risks associated with severe weather, particularly in coastal and hail-prone areas. Progressive has noted that a significant portion of its storm-related losses were concentrated in Texas, reflecting the heightened risks in the region.
As insurers navigate these challenges, consumers should be vigilant about their insurance coverage and premiums. The current environment suggests that affordability and availability of homeowners insurance could become increasingly strained. Prospective and existing policyholders should monitor changes in their insurance policies and be prepared for potential shifts in coverage and costs.
In summary, while Progressive’s temporary restriction on new homeowners policies in Texas is a significant development, it is part of a broader pattern of adjustment within the insurance industry in response to escalating risks and financial pressures.
